Leidos Inc. awarded $10.9M contract for refurbishing Gamma Ray Cargo Inspection Systems by DHS
Contract Overview
Contract Amount: $10,940,699 ($10.9M)
Contractor: Leidos Inc
Awarding Agency: Department of Homeland Security
Start Date: 2007-09-19
End Date: 2009-06-30
Contract Duration: 650 days
Daily Burn Rate: $16.8K/day
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: REFURBISH GAMMA RAY CARGO INSPECTION SYSTEMS
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Homeland Security obligated $10.9 million to LEIDOS INC for work described as: REFURBISH GAMMA RAY CARGO INSPECTION SYSTEMS Key points: 1. Contract value of $10.9M for refurbishment services. 2. Leidos Inc. is the sole contractor for this specific award. 3. The contract duration is 650 days. 4. Services are for U.S. Customs and Border Protection. 5. The contract falls under Irradiation Apparatus Manufacturing. 6. Awarded as a Firm Fixed Price contract.
Value Assessment
Rating: fair
The contract value of $10.9 million for refurbishing Gamma Ray Cargo Inspection Systems appears to be a reasonable investment for critical border security equipment. However, without specific details on the scope of refurbishment, the number of systems involved, and the expected lifespan extension, a precise value-for-money assessment is challenging. Benchmarking against similar refurbishment contracts for specialized inspection equipment is difficult due to the niche nature of Gamma Ray systems. The firm fixed-price nature suggests cost certainty for the government, but the absence of detailed cost breakdowns limits a deeper analysis of pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded to Leidos Inc. as a sole-source contract. This indicates that the agency likely determined Leidos Inc. to be the only responsible source capable of performing the required refurbishment. The lack of competition means that the government did not benefit from a competitive bidding process, which could potentially lead to higher prices than if multiple vendors had vied for the contract. The rationale for sole-source awards typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirements.
Taxpayer Impact: For taxpayers, a sole-source award means that the government may not have achieved the most cost-effective outcome. Without competitive pressure, there is a risk that the price paid is higher than it would have been in a competitive environment. This necessitates strong oversight to ensure the price is fair and reasonable.
Public Impact
Enhances the operational capability of U.S. Customs and Border Protection by ensuring the functionality of vital cargo inspection systems. Supports national security by improving the ability to detect illicit materials and contraband entering the country. Maintains the effectiveness of border security infrastructure at ports of entry. Potentially impacts the workforce involved in the maintenance and operation of these specialized systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potential cost savings for taxpayers.
- Lack of detailed public information on the scope of refurbishment makes value assessment difficult.
- The specialized nature of the equipment may limit the pool of qualified contractors for future procurements.
Positive Signals
- Addresses a critical need for maintaining essential cargo inspection technology.
- Firm Fixed Price contract provides cost certainty for the government.
- Award to an established contractor (Leidos Inc.) suggests a degree of confidence in their capability.
Sector Analysis
The contract falls within the broader 'Defense Industrial Base' or 'Government Services' sector, specifically related to specialized equipment manufacturing and maintenance. The market for Gamma Ray Cargo Inspection Systems is highly specialized, with a limited number of manufacturers and service providers. Spending in this area is driven by national security requirements and the need to maintain advanced inspection capabilities at ports of entry. Comparable spending benchmarks are difficult to establish due to the niche nature of the technology.
Small Business Impact
This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses in the provided data. The focus appears to be on a specialized, sole-source requirement likely handled by a large, established contractor. This means that opportunities for small businesses within this specific procurement are likely minimal, unless they are part of Leidos Inc.'s supply chain.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices. As a sole-source award, there may be increased scrutiny to ensure the price is fair and reasonable and that the scope of work is being met. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse related to the contract execution. Transparency is limited by the sole-source nature and the proprietary aspects of specialized equipment.
Related Government Programs
- Homeland Security Grants
- Customs and Border Protection Equipment Procurement
- Cargo Screening Technology
- Radiation Detection Systems
Risk Flags
- Sole-source award may limit cost-effectiveness.
- Lack of detailed scope of work hinders full value assessment.
- Specialized equipment may have limited market competition for future needs.
Tags
homeland-security, customs-and-border-protection, leidos-inc, firm-fixed-price, sole-source, refurbishment, inspection-systems, cargo-inspection, gamma-ray, california, irradiation-apparatus-manufacturing, dhs
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $10.9 million to LEIDOS INC. REFURBISH GAMMA RAY CARGO INSPECTION SYSTEMS
Who is the contractor on this award?
The obligated recipient is LEIDOS INC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $10.9 million.
What is the period of performance?
Start: 2007-09-19. End: 2009-06-30.
What is the specific scope of work included in the refurbishment of the Gamma Ray Cargo Inspection Systems?
The provided data does not detail the specific scope of work for the refurbishment. It is described broadly as 'REFURBISH GAMMA RAY CARGO INSPECTION SYSTEMS.' A comprehensive understanding would require access to the contract's Statement of Work (SOW). This SOW would typically outline the specific components to be repaired or replaced, the testing procedures, performance standards to be met post-refurbishment, and any upgrades or modifications included. Without this detail, it's challenging to assess the full value and technical requirements of the contract.
How does the $10.9 million contract value compare to historical spending on similar refurbishment projects?
Direct historical spending comparisons for the refurbishment of Gamma Ray Cargo Inspection Systems are difficult to ascertain from the provided data alone. This is a highly specialized area, and such contracts are not frequently awarded. To conduct a thorough comparison, one would need to research past contracts for similar systems, potentially across different agencies or even international partners, looking at factors like the number of units refurbished, the extent of the refurbishment (e.g., component replacement vs. full system overhaul), and the contract duration. The $10.9 million figure represents the total obligated amount for this specific award, and its reasonableness is best assessed against detailed technical requirements and market rates for specialized equipment services.
What are the key performance indicators (KPIs) or metrics used to evaluate the success of this refurbishment contract?
The provided data does not specify the Key Performance Indicators (KPIs) or metrics for this contract. Typically, for refurbishment contracts of critical equipment like cargo inspection systems, KPIs would focus on the operational readiness and performance of the systems post-refurbishment. This could include metrics such as uptime percentage, detection accuracy rates, mean time between failures (MTBF), and adherence to safety and operational standards. The contract's Statement of Work (SOW) and any associated Performance Work Statement (PWS) would detail these evaluation criteria, which are crucial for ensuring the government receives the intended value and functionality.
What is Leidos Inc.'s track record with Department of Homeland Security (DHS) and similar inspection system contracts?
Leidos Inc. is a major government contractor with a significant history of working with the Department of Homeland Security (DHS) and its components, including U.S. Customs and Border Protection (CBP). While this specific data point focuses on one contract, Leidos has a broad portfolio encompassing technology, engineering, and scientific services for various government agencies. Their experience likely includes work on complex systems, logistics, and potentially other types of inspection or security equipment. A deeper dive into their contract history with DHS would reveal the volume and types of contracts awarded, past performance ratings, and any significant issues or successes related to similar procurements.
What is the estimated lifespan extension or improvement in system performance expected from this refurbishment?
The provided data does not specify the expected lifespan extension or performance improvement resulting from this refurbishment contract. This information would typically be detailed in the contract's Statement of Work (SOW) or technical exhibits. Refurbishment projects aim to restore equipment to a specified operational condition, often extending its useful life by a certain period or improving its reliability and efficiency. Without these details, it is difficult to quantify the long-term benefit and return on investment for the government beyond the immediate restoration of functionality.
Are there any known risks associated with the Gamma Ray Cargo Inspection Systems themselves or their refurbishment process?
Risks associated with Gamma Ray Cargo Inspection Systems can include the inherent safety considerations of working with radioactive sources, the potential for obsolescence of older technology, and the specialized maintenance requirements. For the refurbishment process itself, risks might involve unforeseen technical challenges during disassembly and repair, availability of specific replacement parts for older systems, and ensuring that the refurbished systems meet current operational and safety standards. The sole-source nature of this award could also introduce a risk if the contractor encounters significant delays or cost overruns, as competitive alternatives are not readily available.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 16701 W BERNARDO DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,940,699
Exercised Options: $10,940,699
Current Obligation: $10,940,699
Parent Contract
Parent Award PIID: HSBP1005D00990
IDV Type: IDC
Timeline
Start Date: 2007-09-19
Current End Date: 2009-06-30
Potential End Date: 2009-06-30 00:00:00
Last Modified: 2014-07-07
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